RETAINING A REGISTERED BUILDER VS. CARRYING OUT THE BUILDING WORKS YOURSELF

An important decision is whether to retain a builder or be an owner builder. The manner in which work is to be carried out will influence the contractual and insurance arrangements for the work.

Owner-builder:

must obtain a certificate of consent from the Building Practitioners' Board prior to obtaining a building permit for work valued over $12,000;

may only obtain one building permit for a single dwelling or associated work in any three-year period; and

must reside in or intend to reside in the finished dwelling.

Additionally:

will either carry out the work themselves or engage trades people to do the work. Owner-builders should satisfy themselves of the licensing or registration of these trades people;
not required to insure the works against defects unless they sell their home within 6.5 years of d ate of the occupancy permit (s.137B of the Building Act 1993 (Vic) ("Building Act")); and
if in doubt, you should opt for a traditional arrangement and engage a registered builder under a written contract.

Registered building practitioner:

to obtain registration, a building practitioner must hold an appropriate qualification, be of good character and produce to the Building Practitioners' Board evidence that they are covered by the requisite insurance (s.170 of the Building Act); and
the Building Act only permits the registration of persons, not companies or business, thus you need to ensure that the person you are dealing with, i.e. the builder, is registered with the Building Practitioners' Board.

If building work is worth more than $5,000 a builder must be registered and a major domestic building contract is necessary. For work over $12,000 the builder must obtain home warranty insurance

Building surveyors

Building Surveyors - pre-commencement role

You are required to appoint a building surveyor for the works.
They may be either a private practitioner or a local council. For assistance in selecting a building surveyor for your project contact the Building Practitioners' Board.
Once appointed, they may only be removed by application to the Building Commission.
They are responsible for checking the plans and designs to ensure they comply with the relevant building regulations.
They ensure that each building practitioner engaged in the building work is registered and covered by the required insurance and that the requirements of all relevant authorities and planning permits are addressed in the project.

Role of a building surveyor during construction

Carry out mandatory inspections of the work to ensure that work is being carried out in accordance with the approved drawings and relevant regulations.
They are not a supervisor of the building works (typically, they may attend site four or five occasions only).

They are required to act independently and consumers should consult them if they have any questions in respect to the state of the works.

Role of a building surveyor at the completion of building works

Carry out a final inspection before issuing an occupancy permit or a certificate of final inspection.
Permits/certificates are only issued when the building is suitable for occupation. They do not relate to the quality of the building work, and they expressly state that they are not evidence that the work complies with the relevant building legislation and regulations.

Decision to engage an architect

Architects do no provide building supervision services. The services they offer include design development, preparing drawings, obtaining planning permits (if necessary) and building permits, arranging contracts, selecting contractors, administering building contracts and inspection of the works.
Architects are not required to be registered under the Building Act as they are governed by the Architects Act 1991 (Vic).
It is useful to consult an architect about any quote you receive for building works as they can assist you in determining whether the quote is adequate and realistic and reflects your intentions for the work.

Obtaining planning or building permits

Regardless of whether the work is carried by a registered builder or by you as the owner, you will need to obtain necessary planning/building permit.
These permits are separate: not all building works require planning permit, but nearly all works require a building permit.

Building permit :

Issued by building surveyor
Concerned with the structural and technical integrity of the proposed work and whether the work complies with all relevant legislation and regulations.
Under the Building Act, a building permit must be obtained for nearly all building work, being work for and in connection with construction, alteration, demolition or removal of a building.
Required at the beginning of a project before any building work is carried out.

New Bushfire Standard:

In March 2009 the Victorian Government introduced a new Building Standard that provides greater protection in bushfire prone areas. The Building Standard applies to all new constructions and renovations. The Building Commission has established a Bushfire Building Advice Line: 1300 360 320.

For more information on this subject refer to The Law Handbook chapter 14.2